How Escrow Works
in El Paso, Texas
From accepted offer to keys in hand — here's the step-by-step closing process for El Paso home buyers and sellers, including what happens to your earnest money.
The 6-Step Closing Process
Executed Contract
Both buyer and seller sign the contract. The title company is selected and the buyer deposits earnest money (typically 1% of purchase price) within 3 business days.
Option Period
The buyer pays the option fee ($100–$500) for the unrestricted right to terminate. During this 7–10 day window, inspections and appraisals are ordered.
Title Search
The title company searches public records for liens, judgments, or ownership disputes. Clear title is required before closing. Most searches take 1–2 weeks.
Lender Processing
The lender verifies income, employment, and assets. The appraisal is completed. The underwriter issues final loan approval — this typically takes 2–3 weeks.
Clear to Close
The lender issues a 'clear to close' once all conditions are satisfied. The title company prepares the closing disclosure at least 3 business days before closing.
Closing Day
Both parties sign documents at the title company. The buyer wires closing funds. Keys are exchanged upon funding, usually same day or next morning.
Frequently Asked Questions
How does escrow work in Texas?
In Texas, a title company holds the earnest money and manages the closing process. They act as a neutral third party — holding funds, conducting the title search, and disbursing money at closing.
Who selects the title company in Texas?
Either party can suggest a title company, but it's negotiable. In El Paso, common options include Stewart Title, Fidelity National, First American, and other local title companies.
How long does the escrow process take in El Paso?
Typically 30–45 days from executed contract to closing. Cash purchases can close in as little as 7–14 days. VA and FHA loans sometimes take 45–60 days due to additional requirements.
What happens to earnest money if the deal falls through?
If the buyer terminates during the option period, the earnest money is typically returned. After the option period, termination requires a valid contractual reason (failed inspection, low appraisal, or financing contingency) to get the earnest money back.
Do I need an attorney for closing in Texas?
No — Texas is a title-company state. A licensed title company handles the closing. An attorney is optional but may help in complex situations like estate sales or LLC transactions.
ProGen Real Estate · Josue R. Jimenez, Licensed Texas Real Estate Broker · TREC #619091 · (915) 691-1082